What Happens to a Joint Bank Account After a Divorce?
If you and your spouse are ending your marriage, you likely have a lot of concerns. You are probably wondering about your assets. For example, if you have a joint bank account with your spouse, you may wonder what will happen to it in the event of a divorce.
A joint bank account is an account owned by two or more people. Married couples typically have joint bank accounts, although not all do. Each party has the right to deposit and withdraw money. This is true even during the divorce process, although you probably should not empty it and run.
That is because Texas is a community property state. Money in a joint account is considered to be marital property by the courts. It does not matter if one spouse deposited most of the money or if one spouse spent the majority of the money. The money belongs to you and your spouse equally.
So, if you or your spouse empties a joint account without the other spouse’s knowledge, there could be legal repercussions. You or your spouse could be charged with criminal contempt.
What Options Do You Have?
In a divorce, what options do you have? You cannot take your spouse's name off the account without their permission, but here’s what you can do.
- If you and your ex are still on speaking terms, ask them to close the account together and split the funds. If they agree, take the money and immediately open a new account in your name only.
- If you are not on speaking terms, speak with a divorce attorney. Ask if it is legal to withdraw half the money in the account. The answer may vary based on where you are in the divorce process.
- If you're worried that your spouse may withdraw all the money in the account, contact the bank and ask to freeze the account. This way, neither of you can touch the money until the divorce has been finalized.
Because Texas splits assets based on community property, the court will award each spouse half of the money held in a joint account. Once the account has a zero balance, you and your spouse should go to the bank together to close it for good. Closing an account is as easy as signing some documents and showing an ID. However, before closing, be sure to change your autopay for bills and your direct deposit information for paychecks.
Contact Our Pearland TX Divorce Lawyer Today
Texas is a community property state, so assets — including money in joint bank accounts — are usually split up 50/50. If you and your spouse have such an account, make sure to get your fair share.
Have questions or concerns about property division in a divorce? Count on Pearland divorce attorney John Powell III, P.C., for help with your case. Do not leave any money on the table. Schedule a consultation today by filling out the online form or calling (281) 747-6346.